Client Story

How this Midwestern railroad manufacturer achieved $260,000+ in annual savings by switching welding consumables

Located in the sprawling great plains of the Midwest, this reputable rail manufacturer operates three high-volume railcar manufacturing facilities across Missouri and Arizona. In operation since 1988, this manufacturer has grown to employ a large workforce of 1,600 hardworking welders specializing in the construction of hopper and tank cars.

However, the welders frequently reported experiencing technical difficulties with their equipment that was leading to significant downtime and eating into their overall output month-over-month. In efforts to increase corporate efficiencies, the manufacturer looked for a solution.

Problems:

This client was facing several technical challenges that are common to most industrial manufacturers.

Faulty Welding Leads Not Covered By Warranty

Management was alerted when their staff regularly reported faulty welding leads as a result of low-quality cables and poor wire delivery path, leading to significant welding downtime. Since the faults the manufacturer experienced were often not covered by the warranty, they had to frequently foot the bill to replace them.

Repeated Poor Part Fit Lead With No Customer Resolution

Additionally, their welders experienced repeated fit-up issues with their feeders, particularly with the power pin itself not seating inside the power block correctly, resulting in loss of gas pressure. This ultimately caused porosity and consumable failure. 

- Competitor was reached out to and there was no resolution over 18 months.

High Consumable Failure

Finally, the staff experienced the perennial issue that all welders are unfortunately far too familiar with – high consumable turnover. This manufacturer went through a copious amount of consumables, including tips, nozzles, diffusers, liners, handles & triggers, which contributed to significant downtime required to swap out the items.

The competitor had a number of issues with the power pin. It takes approximately 1 hour to fix with 30 minutes for welding position & another 30 minutes for charge time. The cost to fix the Issues is roughly $64 for labor & parts. This happens approximately 1 time per day.  Therefore it would cost about $13,312 per year to continue using the competitor.

Solution:

American Torch Tip engineers our entire suite of welding equipment with machine-precision accuracy and the best warranties on the market to ensure that manufacturers can operate at maximum efficiency.

Immediate Return on Investment from Switching Welding Equipment

When comparing the competitor to American Torch Tip, you can see that the number of tips & nozzles needed was dramatically lower due to a lower amount of breakage. American Torch uses laser precision robots to measure the parts and ensure that they fit inside the torches, reducing the number of parts that need to be replaced due to incorrect seating. In this specific scenario, the user immediately saved $190.51 by switching to American Torch Tip.

ATTC-side-by-side-comparison-case-study

Increased Consumable Duration Results in $260,000+ in Annual Savings

When we look at the long term results based on the numbers above, the total savings per year is upwards of $260,000. More durable & precise parts also means improved efficiency/revenue and improved welder satisfaction. 

Since seeing the resolution provided by American Torch Tip, they have become the manufacturer’s primary brand of welding guns and consumables over the past 4 years, serving their 675 welding stations.

Results

DIfference in Consumables

Using the competitor A totals for 2015 and cutting them in half and eliminating some of the competitors for warranty we will save an esticamted cost per year:

$260,462.73

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